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on Economic Geography |
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Issue of 2017‒04‒09
eight papers chosen by Andreas Koch Institut für Angewandte Wirtschaftsforschung |
| By: | Dario Diodato; Frank Neffke (Center for International Development at Harvard University); Neave O'Clery (Center for International Development at Harvard University) |
| Abstract: | We document the heterogeneity across sectors in the impact labor and input-output links have on industry agglomeration. Exploiting the available degrees of freedom in coagglomeration patterns, we estimate the industry-speci c bene fits of sharing labor needs and supply links with local firms. On aggregate, coagglomeration patterns of services are at least as strongly driven by input-output linkages as those of manufacturing, whereas labor linkages are much more potent drivers of coagglomeration in services than in manufacturing. Moreover, the degree to which labor and input-output linkages are reflected in an industry's coagglomeration patterns is relevant for predicting patterns of city-industry employment growth. |
| Keywords: | Coagglomeration, Marshallian externalities, labor pooling, value chains, manufacturing, services, regional diversi cation |
| JEL: | J24 O14 R11 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:cid:wpfacu:76&r=geo |
| By: | Fischer, Manfred M. |
| Abstract: | This paper presents a theoretical growth model that accounts for technological interdependence among regions in a Mankiw-Romer-Weil world. The reasoning behind the theoretical work is that technological ideas cannot be fully appropriated by investors and these ideas may diffuse and increase the productivity of other firms. We link the diffusion of ideas to spatial proximity and allow for ideas to flow to nearby regional economies. Through the magic of solving for the reduced form of the theoretical model and the magic of spatial autoregressive processes, the simple dependence on a small number of neighbouring regions leads to a reduced form theoretical model and an associated empirical model where changes in a single region can potentially impact all other regions. This implies that conventional regression interpretations of the parameter estimates would be wrong. The proper way to interpret the model has to rely on matrices of partial derivatives of the dependent variable with respect to changes in the Mankiw-Romer-Weil variables, using scalar summary measures for reporting the estimates of the marginal impacts from the model. The summary impact measure estimates indicate that technological interdependence among European regions works through physical rather than human capital externalities. |
| Keywords: | Spatial economics, spatial econometrics, growth empirics, human capital externalities, physical capital externalities, technological interdependence, European regions |
| JEL: | C31 O18 O47 R11 R15 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:77547&r=geo |
| By: | Giulio Bottazzi (Institute of Economics, Sant'Anna School of Advanced Studies, Pisa); Ugo Gragnolati (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Fabio Vanni (Institute of Economics, Sant'Anna School of Advanced Studies, Pisa) |
| Abstract: | This paper presents a model of firm localization in which the intrinsic advantages of regions are disentangled from localized externalities, while this latter force is allowed to have a quadratic shape. We verify through inferential analysis whether the quadratic component of localized externalities is statistically different from zero. Such term can reflect more-than-linear positive feedbacks as well as congestion effects, so that the sign of the interdependencies stemming from localization is not assumed a priori to be positive. Our main result is that the quadratic term is virtually never statistically different from zero across Italian sectors observed at the scale of commuting zones, so that localized externalities seem to be well approximated by a linear specification. JEL codes: C12, C16, C51, R30. |
| Keywords: | Firm localization,Externalities,Non-linearities |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-01405780&r=geo |
| By: | Christopher Baum; Hans Lööf,; Pardis Nabavi |
| Abstract: | This paper examines variation in productivity growth within a given location and between different locations. Implementing a dynamic panel data approach on Swedish micro data, we test the separate and complementary effect of internal innovation efforts and spillovers from the local milieu. Measuring the potential knowledge spillover by access to knowledgeintensive services, the estimation results produce strong evidence of differences in the capacity to benefit from external knowledge among persistent innovators, temporary innovators and non-innovators. The results are consistent regardless of whether innovation efforts are measured in terms of the frequency of patent applications or R&D investments see above see above |
| Keywords: | Sweden, Growth, Sectoral issues |
| Date: | 2015–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:008007:8970&r=geo |
| By: | Frank Neffke (Center for International Development at Harvard University); Anne Otto; Cesar A. Hidalgo |
| Abstract: | Establishment closures leave many workers unemployed. Based on employment histories of 20 million German workers, we find that workers often cope with their displacement by moving to different regions and industries. However, which of these coping strategies is chosen depends on the local industry mix. A large local presence of predisplacement or related industries strongly reduces the rate at which workers leave the region. Moreover, our findings suggest that a large local presence of the predisplacement industry induces workers to shift search efforts toward this industry, reducing the spatial scope of search for jobs in alternative industries and vice versa. |
| Keywords: | Germany, Economic Growth, Immigration, Labor Economics |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:cid:wpfacu:71&r=geo |
| By: | Jenny Schuetz; Arturo Gonzalez; Jeff Larrimore; Ellen A. Merry; Barbara J. Robles |
| Abstract: | For much of the 20th century, America's central cities were viewed as synonymous with economic and social hardship, often used as proxy for low-income communities of color. Since the 1990s, however, many metropolitan areas have seen a resurgence of interest in central city neighborhoods. Theoretical models of income sorting lead to ambiguous predictions about where households of different income levels will live within metropolitan areas. In this paper, we explore intra-city spatial patterns of income and race for U.S. metropolitan areas, focusing particularly on the locations of low-income and minority neighborhoods. Results indicate that, on average, income and white population shares increase with distance to city centers. However, many centrally located neighborhoods are neither low-income nor majority non-white, while low-income and minority neighborhoods are spatially dispersed across most metropolitan areas. |
| Keywords: | Community development ; Demographic economics ; Housing policy ; Income sorting ; Neighborhood choice ; Racial segregation ; Urban spatial structure ; Urban, rural and regional economics |
| JEL: | I3 J1 R1 R2 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2017-31&r=geo |
| By: | Petar Vujanovic |
| Abstract: | In 1998 Indonesia embarked on an ambitious course of decentralisation. Over a period of a few years, facilitated by financial transfers from the central government, responsibility for many public services and administrative tasks were devolved to local authorities. This process is continuing. Regional development is now very much in the hands of the four sub-national tiers of government. However, the speed of the devolution means that much is being done without the required accompanying skills, technical capacities, resources and oversight. As a result, while good progress has been made nationally along a number dimensions, outcomes in health, education, infrastructure, corruption and the provision of other social services have not improved as quickly as was hoped, and the variance in results across the regions has been enormous. Rather than simply devolving more and more responsibilities to sub-national authorities, the central government needs to take a more strategic view of regional economic development. This includes monitoring the performance of sub-national governments, providing them with technical assistance where needed, encouraging them to emulate the best performers and in the short- to medium-term using grants to direct spending to priority areas. The inter-governmental transfer framework also would benefit from better oversight and a strategic vision. Moreover, the perverse incentives it embodies are driving rent-seeking and the fragmentation of local jurisdictions. In the longer term the objective should be tax autonomy and transfers based exclusively on block grants although this should be conditional on adequate oversight and administrative capacities within the sub-national authorities. Conflicting and overlapping laws and regulations across levels of government are also inhibiting regional development by obstructing private business development and investment. This Working Paper relates to the 2016 OECD Economic Survey of Indonesia (www.oecd.org/eco/surveys/economic-surve y-indonesia.htm). |
| Keywords: | decentralisation, fiscal relations, regional development |
| JEL: | F63 H75 O1 O18 O53 R1 R11 |
| Date: | 2017–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1380-en&r=geo |
| By: | TAKAKI SATO; YASUMASA MATSUDA |
| Abstract: | This paper proposes spatial autoregressive conditional heteroscedasticity (S-ARCH) models to estimate spatial volatility in spatial data. S-ARCH model is a spatial extension of time series ARCH model. S-ARCH models specify conditional variances as the variances given the values of surrounding observations in spatial data, which is regarded as a spatial extension of time series ARCH models that specify conditional variances as the variances given the values of past observations. We consider parameter estimation for S-ARCH models by maximum likelihood method and propose test statistics for ARCH effects in spatial data. We demonstrate the empirical properties by simulation studies and real data analysis of land price data in Tokyo. |
| Date: | 2016–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:toh:dssraa:59&r=geo |